Walgreens introduced on Tuesday it’s going to shut roughly 1,200 shops over the subsequent three years, together with 500 shops within the present fiscal yr.
The plan, in line with the corporate press launch, would unencumber money move and assist assist adjusted earnings.
“Fiscal 2025 will be an important rebasing year as we advance our strategy to drive value creation. This turnaround will take time, but we are confident it will yield significant financial and consumer benefits over the long term,” Walgreens Boots Alliance CEO Tim Wentworth stated in an announcement Tuesday.
The pharmacy chain has been struggling, like a lot of its rivals, amid rising operations prices and decrease reimbursements for prescriptions.
In June, the corporate introduced they had been finalizing a cost-cutting plan that may have included closing lots of of shops. The 1,200 whole shops set to shut within the subsequent three years embrace the 300 permitted within the plan earlier this yr.
The pharmacy chain introduced the corporate’s internet lack of $3 billion, up from $180 million from the fourth quarter final yr. Adjusted earnings decreased to $0.39, the corporate stated, and the fourth quarter gross sales elevated to $37.5 billion.
“Our financial results in the fiscal fourth quarter and full year 2024 reflected our disciplined execution on cost management, working capital initiatives and capex reduction,” Wentworth stated.
“In fiscal 2025, we are focusing on stabilizing the retail pharmacy by optimizing our footprint, controlling operating costs, improving cash flow, and continuing to address reimbursement models to support dispensing margins and preserve patient access for the future,” he added.
